Costs in the sale - GST

[Go Girl]

Hi,

I am selling my IP (Victoria)

The costs I have factored in are:

Agent commission
Legals

Are there any other glaringly obvious costs I have missed and will there be GST payable and if so will it be able to be claimed back in full because it is an IP?

Thanks in advance.

Go Girl

 

[LynnH]

Don't forget CGT! If you've owned the property for more than 12 months, CGT will be calculated on half the amount of capital gain.

Cheers
LynnH

 

[Go Girl]

Thanks LynnH,

Unfortunately no CGT - selling for a break even due to margin loan issues

Any ideas on GST

 

[Ausprop]

did you build it with the intention of resellign at a profit?

is the property brand new / has it been rented?

are you registered for GST?

 

[Go Girl]

Hi Ausprop,

Yes, would have liked to take some profit but alas it has disappeared with the falling RE market. Yep, registered for GST.

 

[The Y-man]

Hi Ausprop,

Yes, would have liked to take some profit but alas it has disappeared with the falling RE market. Yep, registered for GST.

You might have missed the point of Ausprop's question - are you a "builder/developer" or was this a property on which no GST has been claimed in the past (i.e. your "bog standard" residential IP just bought for rental)

Cheers,

The Y-man

 

[Go Girl]

"bog standard" residential IP just bought for rental....

 

[Ausprop]

in which case... why are you registered for GST? what is creating the business turnover?

anyway here you go -

http://www.bantacs.com.au/booklets/How_Not_To_Be_A_Developer_Booklet.pdf

perhaps comne back and tell us where you think your situation sits

 

[Go Girl]

Thanks Ausprop,

We are registered for GST for other investments. But it looks like GST will not be an issue in this case.

Go Girl